Reference no: EM133240010
Davao Golden Store completed the following merchandise transactions in the month of August 2022. At the beginning of August, the ledger of Davao Golden Store showed cash of P50,000 and Amo, Capital of P50,000.
August 1 - Purchased merchandise on account from Diamond amounting to P50,000, terms: 2/10, n/30.
August 2 - Sold merchandise on account to various customers P8,000, terms: 2/10, n/30.
August 5 - Received credit from Diamond for merchandise returned P2,000.
August 8 - Received collections in full, less discounts, from customers billed on sales of P4,000 on August 2.
August 10 - Paid Diamond in full, less discount. August 11 - Purchased supplies for cash, P3,000.
August 13 - Purchased merchandise for cash, P25,000.
August 15 - Received refund for poor quality merchandise from supplier on cash purchase P2,000.
August 17 - Purchased merchandise from Hark, P19,000 FOB shipping point, terms: 5, 2/10, n/30.
August 19 - Paid freight for August 17 purchases, P500.
August 24 - Sold merchandise on account P9,600, and paid freight for P400.
August 25 - Purchased merchandise for Corn, P10,000, FOB destination, terms: 2/10, n/30.
August 27 - Paid Hark in full, less discount.
August 28 - Made refunds to cash customers for defective merchandise, P1,000.
August 31 - Sold merchandise on account, P30,000, terms: n/30.
Prepare the following:
1. Journal entries (using periodic method)
2. Ledger Entries (periodic method)
3. Computation (with solution) of the following after preparing the ledger entries:
a. Purchases ______________
b. Purchase returns and allowances______________
c. Purchase discounts ______________
d. Freight in ______________
e. Sales _____________